Kuaishou Technology, Douyin (TikTok)’s top competitor in China, has unveiled an impressive financial performance for the first quarter of 2024, signaling robust growth and strategic advancements across its platforms.
The company’s unaudited consolidated results reflect a significant surge in revenues, operating profit, and user engagement metrics, underscoring its dominant position in the digital economy.
A robust start to 2024
In Q1 2024, Kuaishou reported revenues of RMB 29.4 billion, marking a 16.6% increase compared to the same period in 2023.
This growth was accompanied by a notable rise in gross profit, which reached RMB 16.1 billion, up from RMB 11.7 billion in Q1 2023, reflecting a gross profit margin of 54.8%.
The company’s operating profit soared to RMB 3.99 billion, reversing the operating loss of RMB 698 million from the previous year.
Strategic initiatives driving growth
Kuaishou’s strategic initiatives have been pivotal in driving its growth. The company’s innovative traffic recommendation mechanism, enhanced monetization strategies, and robust e-commerce operations have all contributed to its strong financial performance.
In Q1 2024, Kuaishou rolled out a new traffic recommendation mechanism, aligning user experience improvements with increased monetization efficiency.
This strategy has attracted higher buyer budgets and boosted the company’s e-commerce business, which grew by 28.2% year-over-year to RMB 288.1 billion in GMV.
Financial highlights
Kuaishou’s financial metrics paint a picture of robust growth and strategic success. The company achieved an adjusted net profit of RMB 4.39 billion, a staggering increase from RMB 42 million in Q1 2023.
The adjusted EBITDA also saw a significant rise, reaching RMB 5.98 billion, up from RMB 1.99 billion in the same period last year. These metrics highlight Kuaishou’s effective cost management and revenue generation strategies.
User engagement and platform growth
Kuaishou’s user engagement metrics have shown impressive growth, with average DAUs reaching 393.8 million, up from 374.3 million in Q1 2023.
Average MAUs also increased to 697.4 million, reflecting the company’s successful user acquisition and retention strategies.
The average daily time spent per DAU on the Kuaishou app was 129.5 minutes, further emphasizing the platform’s ability to engage users effectively.
Kuaishou’s adjusted net profit of RMB 4.39 billion and adjusted EBITDA of RMB 5.98 billion are indicators of strong financial health. The substantial increase in these metrics from the previous year highlights the company’s effective cost management and revenue generation capabilities. Additionally, the significant reduction in administrative expenses by 49.7% year-over-year is a positive sign of operational discipline.
The growth in Kuaishou’s overseas business, with revenues reaching RMB 991 million, up 193.2% year-over-year, and the narrowing of operating losses in these markets, indicates successful international expansion. The company’s localized strategies and investments in content generation and platform optimization are paying off, contributing to overall revenue growth and improved operating efficiency.